Green hydrogen prices to fall 75% by 2030; $7bn solar plant to open in China: NRG Matters

Green hydrogen prices to fall 75% by 2030; $7bn solar plant to open in China: NRG Matters
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Updated 29 December 2021

Green hydrogen prices to fall 75% by 2030; $7bn solar plant to open in China: NRG Matters

Green hydrogen prices to fall 75% by 2030; $7bn solar plant to open in China: NRG Matters

RIYADH: Demand for green energy is still bright; nevertheless, volatility still exists today due to government policies in countries like China and other uncontrolled factors such as weather conditions.

Looking at the Bigger Picture:

  • Green hydrogen prices are projected to plunge by almost 75 percent by 2030 as the production of electrolyzes – the fundamental technology behind green hydrogen – swiftly increases. The emergence of green hydrogen projects in the near future is expected to undercut blue hydrogen projects, hence adversely affecting investors who choose to spend significant amounts on the latter.
  • US natural gas stocks shrug off by 2.2 percent after three-week peak due to warmer weather and lower demand forecasts respectively, according to Reuters. This comes as the prices are volatile due to fluctuations in the weather. When it’s cold, the market surges and when it gets warmer, the market soothes.
  • UK moves from energy supplier crisis to cost of living crisis as gas and electricity suppliers warn of increasing costs that are projected to last until 2023, the Financial times reported. Government intervention is required to smooth the large increase over a larger period of time so that consumers do not suffer.

Through a micro lens:

  • China’s Risen Energy Co. – developer, manufacturer, and supplier of photovoltaic applications – to invest $7 billion (45 billion yuan) in a solar power plant in northern China that will run on clean energy, Bloomberg reported. The factory aims to deliver various resources across the supply chain from industrial silicon to complete solar units.
  • China receives backlash for endorsement of a new vast coal power plant as countries worldwide are trying to limit the emission of greenhouse gases, Reuters reported. Guodian Power Shanghaimiao Corporation – the operator of the plant- argues that the factory entails low rates of coal and water consumption due to efficient technology.
  • Several US based institutions – including startup Francis Energy – collaborate in an attempt to boost demand for electric vehicles in rural areas by expanding the accessibility of EVs charging stations, the Wall Street Journal reported.

Kamco Invest’s credit rating maintained at BBB with stable outlook

Kamco Invest’s credit rating maintained at BBB with stable outlook
Updated 11 sec ago

Kamco Invest’s credit rating maintained at BBB with stable outlook

Kamco Invest’s credit rating maintained at BBB with stable outlook

RIYADH: Kuwait-listed Kamco Invest’s long-term and short-term credit ratings have been maintained at “BBB” and “A3”, respectively, with a stable outlook, by Capital Intelligence.

The rating was issued by the firm in its most recent report, highlighting two key strengths for Kamco, according to a statement.

The first is its “strong funding and liquidity base” and the second is “the company’s business model with substantial assets under management.”

The Kuwaiti asset management, investment banking and brokerage firm has $14.6 billion of assets under management, according to its website.

“Capital Intelligence’s investment grade rating of Kamco Invest reaffirms the strength of the company’s financial position, business model, and management capabilities,” said CEO, Faisal Mansour Sarkhou.

He added: “The rating follows a record year in terms of our performance and the size of our AUM, positively reflecting the robustness of our evolving business model and range of offerings.”


SADAFCO board proposes half-year dividend of $0.8 per share 

SADAFCO board proposes half-year dividend of $0.8 per share 
Updated 6 min 22 sec ago

SADAFCO board proposes half-year dividend of $0.8 per share 

SADAFCO board proposes half-year dividend of $0.8 per share 

RIYADH: Saudia Dairy and Foodstuff Co.’s, or SADAFCO's, board has recommended a dividend payout of SR3 per ($0.8) share, 30 percent of capital, for the second half of the fiscal year ended March 31, 2022.

A total of SR96 million will be allocated to dividend payouts, with around 32 million shares eligible, the company said in a bourse filing.

From the same period last year to this one, the dairy firm hasn't changed its payout.

This was despite SADAFCO reporting a 20 percent drop in profit to SR207.3 million for the fiscal year ended on March 31, 2022, and compared to SR260.6 million in the year-earlier period. 

SADAFCO, based in Jeddah, operates sales and distribution centers in 24 locations across Saudi Arabia, Bahrain, Qatar, Jordan, and Kuwait. 


China In-focus: Logistics surges 3.6% to hit $15.95tr; lockdowns delay new iPhone development

China In-focus: Logistics surges 3.6% to hit $15.95tr; lockdowns delay new iPhone development
Updated 23 min 31 sec ago

China In-focus: Logistics surges 3.6% to hit $15.95tr; lockdowns delay new iPhone development

China In-focus: Logistics surges 3.6% to hit $15.95tr; lockdowns delay new iPhone development

RIYADH: China’s logistics sector climbed 3.6 percent during the first four months of 2022. Apple Inc.’s new iPhone is facing delays as a result of strict COVID-19 lockdowns. Meanwhile, the Asian country reportedly invited 10 Pacific nations for a region-wide deal on data communication cooperation.

·      China’s logistics sector surged 3.6 percent in the first four months of 2022 to reach 106.2 trillion yuan ($15.95 trillion), local press agency Xinhua reported, citing an industry report by the China Federation of Logistics and Purchasing. The sector’s growth rate slipped 3 percent in April month-on-month when compared to the corresponding period a year earlier.

·      American multinational technology company Apple Inc.’s new iPhone development agenda has been hindered as a result of the strict COVID-19 lockdowns in the country, Reuters reported, citing Nikkei newspaper. 

·      Chinese intelligent mobility platform T3 Mobility is hoping to secure at least 5 billion yuan in its latest funding round, Bloomberg reported, citing individuals familiar with the matter. To achieve this, the firm is working with advisers to explore ways in which they can lure investors. 

·      China has sent official documents along with a five-year action plan to 10 Pacific islands, which include the Solomon Islands, Kiribati, Samoa, Fiji, Tonga, Vanuatu, and Papua New Guinea, as it seeks policing, security, and data communication cooperation with them, Reuters reported. 

Foreign Minister Wang Yi will host a meeting on May 30 to further discuss this matter and possibly seal the deal with the invited parties. However, one of the invited nations argues that the documents and plans signaled that China is seeking control of the region, therefore threatening regional stability in the region.


Saudi Arabia advances 10 places in the WEF’s global tourism index 

Saudi Arabia advances 10 places in the WEF’s global tourism index 
Updated 26 min 49 sec ago

Saudi Arabia advances 10 places in the WEF’s global tourism index 

Saudi Arabia advances 10 places in the WEF’s global tourism index 

RIYADH: Saudi Arabia has jumped to 33rd place in the World Economic Forum’s Travel & Tourism Development Index 2021, advancing 10 places compared to 2019.

Globally, the Kingdom ranked first in terms of demand pressure and ninth in terms of prioritization of travel and tourism, according to tourism minister Ahmed Al-Khateeb's tweet. 

“We have vision, leadership, commitment and the energy of the Saudi people. Together we are creating a tourism sector that will drive our prosperity,” he said in his tweet. 

Saudi Arabia’s key improvements were in tourist service infrastructure as it advanced 7 places to rank the 40th. In addition to its timelines of tourism data as it jumped to the first place, up from the eighth. 


MENA Project Tracker: Jeddah Central Development appoints Modern Building Leaders for $20bn project

MENA Project Tracker: Jeddah Central Development appoints Modern Building Leaders for $20bn project
Updated 33 min 56 sec ago

MENA Project Tracker: Jeddah Central Development appoints Modern Building Leaders for $20bn project

MENA Project Tracker: Jeddah Central Development appoints Modern Building Leaders for $20bn project

RIYADH: Jeddah Central Development Co. has appointed local Modern Building Leaders for a major real estate project.

Abu Dhabi Investment Office is also partnering with Abu Dhabi Department of Education on the construction of three new schools.

Additionally, Oman’s Salalah Free Zone is collaborating with Salalah Petroleum Co. for a mega petrochemicals plant. The deadline for Libya’s Tobruk terminal upgrade has been extended.

Meanwhile, China’s Longi will supply solar photovoltaic panels to an independent power project in Rabigh, Saudi Arabia.

·      Jeddah Central Development Co., a wholly-owned unit of Saudi Arabia’s sovereign wealth fund Public Investment Fund, has awarded local Modern Building Leaders, the development works contract for the first phase of its major SR 75 billion ($20 billion) Central Jeddah Project, Trade Arabia reported. Under the terms of the contract, MBL will be accountable for the infrastructure, marine works, relocation of water, electricity, and waste management infrastructure services. The project is set to be developed on a 5.7 million square meter area in the Saudi port city of Jeddah.

·      Abu Dhabi Investment Office is partnering with Abu Dhabi Department of Education on the development of three schools in Zayed city, Trade Arabia reported. The project will be led by Belgian construction firm Besix as well as Australian infrastructure investment business Plenary Group. Scope of the work for the project includes the design, construction, finance, and maintenance of three campuses that are capable of accommodating 5,360 students in the city.

·      One of Oman’s most important industrial hubs, the Salalah Free Zone, has signed a protocol with domestic Salalah Petroleum Co. to establish a $88 million petrochemicals production facility, MEED reported. The petrochemicals plant – which will be located within the Salalah Free Zone – will spread over an area of 78,000 square meters. In addition to this, output from the facility is set to be exported via the Port of Salalah. 

·      The deadline to submit the prequalification documents for Libya’s $300 million Tobruk Oil terminal modernization program has been pushed to June 7, from 21 of March previously, MEED reported. This is mainly attributed to political and security instability in the African country. A subsidiary of the country’s National Oil Corporation, Brega Petroleum Marketing Co. is the client working on the project.

·      Chinese photovoltaic company Longi has been awarded a contract to supply solar photovoltaic panels to South Rabigh Renewable Energy CO.’s solar photovoltaic independent power project in Saudi Arabia, MEED reported. The panel cells are forecasted to entail a capacity of up to 400 MW alternating current.